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Property Agency

Eddisons comments on Q4 2021 RICS Commercial Property Market Survey

The Royal Institution of Chartered Surveyors has recently published its latest quarterly UK Commercial Property Market Survey (Q4 2021) with the strap line ‘Twelve-month expectations hit fresh highs for the industrial sector’. The office market is still being impacted by Covid-19 with tenant demand stifled during Q4 despite 66% of survey participants feeling that office space is essential for a company to operate successfully.

Commenting on the latest findings, Phil Shopland-Reed, Associate Director of Eddisons said ‘In terms of the Leeds/ Yorkshire Market the office market has shown a steady improvement in city centre take-up as Covid-19 restrictions have been lifted and relaxation of the governments work from home guidance. Leeds City Centre take up will finish at approximately 625,000 sq ft for the year which despite being below the 5 yearly average is an encouraging position given the restrictions and uncertainty around office occupation. Our experience in Leeds and Yorkshire is broadly in line with the UK picture reported by RICS. The office market is still hampered by covid restrictions and the ‘return to normal’ taking time for occupiers to establish and implement.

Office enquires have increased over the quarter largely due to occupiers now encouraging a return to the office in on a flexible/hybrid arrangement. The general view in the region on office space is broadly in line with the finding from the RICS survey stating that 66% of survey participants felt that office space is essential although our view is figure is slightly higher with more occupiers returning to a hybrid model for staff.

Generally across the other sectors the outlook in Yorkshire is positive with the Industrial sector continuing to perform strongly with excellent demand and continued rental growth and yield compression however the shortage of supply is the biggest risk t the sector. The retail sector is experiencing a steady recovery in terms of the enquiry numbers however this is on small retail units that appeal to fledgling companies establishing out of lockdown. Larger retail units continue to struggle. Investor demand remains high in areas of growth or opportunities for asset management.’

To read the full RICS survey visit: https://www.rics.org/globalassets/rics-website/media/news/news–opinion/uk-commercial-property-market-survey—q4-2021.pdf

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